You are here: Home » Companies » News
Business Standard

NMDC likely to file for FPO by Jan 25

Press Trust of India  |  New Delhi 

The country's largest iron ore producer National Mineral Development Corporation (NMDC) is planning to file draft prospectus with the market regulator Sebi within a fortnight for its estimated Rs 14,000-crore disinvestment programme.

"NMDC is targeting to file the draft red herring prospectus for the follow-on public offer by January 25. It is in line with the target to complete the divestment process by March 31," a person in the know of the development said.

The government has already appointed book runners- cum-lead managers comprising Citigroup, Kotak Mahindra, RBS Equities, UBS Securities, Morgan Stanley and Edelweiss Capital to advice on the FPO.

The inter-ministerial group also shortlisted the Mumbai-based law firm Crawford Bayley to advice on the share sale, a Finance Ministry official had said.


The government is proposing to offload 8.38 per cent of its stake in the NMDC through an FPO, which is expected to fetch Rs 14,000 crore to the exchequer, depending on the share price and also of the issue price. The NMDC counter closed at Rs 434, up 3.57 per cent on the BSE.

Currently, the government holds about 98.38 per cent in the Navratna mineral company, as the rest are already with the public.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, January 11 2010. 20:09 IST
RECOMMENDED FOR YOU
.